Speaking to iGB, Seckelmann, who is head of gambling & crypto at Bichara e Motta Advogados, said he believes this first year of operation for online gambling in Brazil will bring many changes in regulations as the sector settles into the new rules.
He expects 2025 to be a “year of consolidation” for gambling in Brazil as regulations and expectations from the regulator are interpreted and finalised.
“We can expect a lot of changes and consolidation in Brazil this year, consolidation of the understanding or the interpretation [of regulations] for the SPA. [Consolidation] of what’s going to work, what’s going to be allowed, what’s not going to be allowed and eventual changes that we’re going to have implemented,” Seckelmann tells iGB.
“For example, with all the scrutiny we’ve had on the sector, maybe it’s a possibility that the regulator, or other public authorities in Brazil, will say that you have to further restrict advertising or increase gambling taxes.”
Brazil launched its regulated online gambling market on 1 January 2025, awarding licences to a handful of operators. It looks set to become one of the world’s premier betting nations due to its vast population of over 200 million people and sports-heavy culture.
The regulator, the Secretariat of Prizes and Bets (SPA), awarded 14 full online betting licences on 1 January, while over 50 companies were handed provisional licences as they finalise technical certifications and meet other compliance specifications.
International giants such as Bet365 and Betsson have joined local players like Aposta Ganha and Rei do Pitaco in the market.
But while optimism for the market is palpable, the sector is also facing challenges in relation to public pressure over the fears of rising addiction levels, as well as operational difficulties such as KYC compliance.
Public perception of gambling in Brazil
Part of the problem, says Seckelmann, is the negative perception of gambling in some areas of Brazil, with the sector receiving a wave of criticism in the second half of 2024.
Improving that perception will therefore be key in 2025, as well as pushing against the kind of overregulation that has caused channelisation issues in European markets such as Germany.
“This is something that I think the industry as a whole is working on, to show the public that, ‘we’re not the bad guys here, we are the good guys that want to follow the law and the regulation’,” Seckelmann continues.
“But at the same time, you cannot just simply put the tax up and add restrictions because this does not work. If you analyse other jurisdictions, this does not work. You have to be careful, and I think this is the year that operators [will] invest in PR to show that does not work.”
Negative narrative is influencing politicians and regulator
The public pressure over the back end of 2024 was partly driven by a controversial study from the retail sector that accused gambling of cannibalising its profits and impacting consumer spending on healthcare and food.
Numerous political proposals have since been tabled to restrict operators’ activities. One bill presented to the senate has even proposed banning betting altogether. Seckelmann believes these actions have been heavily influenced by the retail sector’s study.
Secklemann warns that this narrative is impacting the decisions made by the gambling regulator.
“We’re living in the middle of a narrative war in which retail and other sectors of the economy in Brazil are claiming, ‘Look how much money is spent by the players into the betting industry’, but they don’t take into account the winnings they received back,” Seckelmann adds.
“So what appears to the public is that all this money is spent and lost by bettors in Brazil. And that’s not the case.
“Of course, the consequence of this is driving public opinion, driving the congress’ opinion, and [even] driving the regulator’s opinion sometimes.”
